Krispy Kreme Doughnuts Inc. swung to a profit in the second quarter as sales rose at its 633-unit doughnut and coffee chain.
The company reported net income of $2.2 million, or 3 cents per share, for the second quarter ended Aug. 1. That compares with a loss of $157,000 in the year-ago quarter, when the company booked higher interest expense and impairment charges.
Revenue rose 6.3 percent to $87.9 million from $82.7 million in the second quarter last year, the Winston-Salem, N.C.-based chain said. Same-store sales at corporate stores rose 5.7 percent, marking the brand’s seventh consecutive quarterly increase.
James Morgan, Krispy Kreme Inc.’s president and chief executive, expressed cautious optimism based on the chain’s latest financial performance.
“Our transition is an ongoing process, and we are confident we can build an even stronger foundation for the future by continuing to both invest in our businesses and support our domestic and international franchisees,” said James Morgan, Krispy Kreme Inc.’s president and chief executive. “We believe that we are only beginning to unlock the potential of the Krispy Kreme brand for our customers, franchisees, team members and shareholders.”
Krispy Kreme raised its outlook for the current fiscal 2011, saying it now expects operating income between $13 million and $17 million, compared with an earlier range of $11 million to $15 million.
The company added 17 locations in the quarter, ending the period with 633 corporate and franchised branches.
Contact Elissa Elan at [email protected].